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MPEG LA, LLC today announced that it has commenced an action
against Audiovox Electronics Corporation for breach of contractual
obligations as a Licensee to MPEG LA?s MPEG-2 Patent
Portfolio License and 1394 Patent Portfolio License.

According to the complaint filed in the Supreme Court of the State
of New York, Audiovox has breached its contractual obligations by
failing to report fully its manufacture or sale of products such as
DVD players and digital TVs that use the MPEG-2 digital video
compression standard or employ the high speed transfer digital
interface provided for in the IEEE 1394 standard, failing to make
full payments for its manufacture or sale of such products, and
refusing to allow an audit as permitted by the MPEG-2 Contract and
1394 Contract.

MPEG LA seeks, among other things, monetary damages, an order
requiring Audiovox to allow the contractually required audit, an
accounting of all products manufactured or sold by Audiovox subject
to the Contracts, as well as injunctive relief prohibiting Audiovox
from the manufacture or sale of MPEG-2 and 1394 products.